Business Plan Sample: Economic and Social Factors

Economic and Social Factors

Service industries represent the fastest growing sector of the national economy, and travel and tourism agencies are poised to flourish in the midst of today's economic boom. These services are projected to grow at an average annual growth rate of 4.1 percent over the period from 1990 to 2010 (Appendix 1). The travel and tourism industry thrives in a vital economy.

The general economic climate in the city of Seattle is very strong. An influx of new businesses has added to the area's prosperity, and the already large population of young professionals is growing. The city of Seattle is the center for business in King County, with over 400,000 people employed in industries such as aerospace, transportation equipment, health services, tourism, computer software, and biotechnology.

Competitive Environment

The quality of service and the number of providers in the travel industry constantly fluctuate. Our competitive edge will be in attracting and retaining our customers with the most highly trained and well-informed individuals we can recruit. With our expertise in European adventure vacations, we will be able to provide the most accurate, up-to-date information possible.

Long-Term Opportunities

Tourism in general is on the rise (Appendix 1), Europe looks like it will continue to be the major destination, and the Internet will be an important channel into this market. The state of the economy will be the most influential factor in how many people travel. Other driving forces for travel will include the cost of tickets, fuel prices, the threat of terrorism, and currency rates.

The current lack of leaders in the European adventure travel industry represents an exceptional opportunity for Northwind Traders to develop a dominant presence in the Greater Seattle area. With their exceptional knowledge of the adventure travel industry, strong customer base, and competitive prices, the company will be well situated to take advantage of the region's current economic prosperity.